Introduction :: SAN MARINO

Geographically the third smallest state in Europe (after the Holy See and Monaco), San Marino also claims to be the world's oldest republic. According to tradition, it was founded by a Christian stonemason named MARINUS in A.D. 301. San Marino's foreign policy is aligned with that of the EU, although it is not a member; social and political trends in the republic track closely with those of its larger neighbor, Italy.

history: consists of several legislative instruments, chief among them the Statutes (Leges Statuti) of 1600 and the Declaration of Citizen Rights of 1974

amendments: proposed by the Great and General Council; passage requires two-thirds majority Council vote; Council passage by absolute majority vote also requires passage in a referendum; Declaration of Civil Rights amended several times, last in 2012 (2016)

chief of state: co-chiefs of state Captain Regent Mateo FIORINI and Captain Regent Enrico CARATTONI (for the period 1 October 2017 - 1 April 2018)

head of government: Secretary of State for Foreign and Political Affairs Nicola RENZI (since 27 December 2016)

cabinet: Congress of State elected by the Grand and General Council

elections/appointments: co-chiefs of state (captains regent) indirectly elected by the Grand and General Council for a single 6-month term; election last held in September 2017 (next to be held in March 2018); secretary of state for foreign and political affairs indirectly elected by the Grand and General Council for a single 5-year term; election last held on 11 November 2012 (next to be held by November 2017)

election results: Mateo FIORINI (Popular Alliance) and Enrico CARATTONI (SSD) elected captains regent; percent of Grand and General Council vote - NA; Pasquale VALENTINI (PDCS) elected secretary of state for foreign and political affairs; percent of Grand and General Council vote - NA

note: the captains regent preside over meetings of the Grand and General Council and its cabinet (Congress of State), which has 9 other members who are selected by the Grand and General Council; assisting the captains regent are 9 secretaries of state; the secretary of state for Foreign Affairs has some prime ministerial roles

description: unicameral Grand and General Council or Consiglio Grande e Generale (60 seats; members directly elected in a single national constituency by proportional representation vote in 2 rounds if needed; members serve 5-year terms)

elections: last held on 20 November 2016 (next to be held by November 2021)

highest court(s): Council of Twelve or Consiglio dei XII (consists of 12 members); note - the College of Guarantors for the Constitutionality and General Norms functions as San Marino's constitutional court

judge selection and term of office: judges elected by the Grand and General Council from among its own to serve 5-year terms

subordinate courts: first instance and first appeal criminal, administrative, and civil courts; Court for the Trust and Trustee Relations; justices of the peace or conciliatory judges

San Marino Common Good (includes Sammarinese Christian Democratic Party or PDCS [Marco GATTI], We Sammarinese or NS [Marco ARZILLI], Party of Socialists and Democrats or PSD [Paride ANDREOLI], Popular Alliance or AP [Gabriele GATTI])

Entente for the Country (Intesa per il Paese; includes Socialist Party or PS [Alessandro BEVITORI], Union for the Republic or UPR [Marco PODESCHI)

two equal horizontal bands of white (top) and light blue with the national coat of arms superimposed in the center; the main colors derive from the shield of the coat of arms, which features three white towers on three peaks on a blue field; the towers represent three castles built on San Marino's highest feature, Mount Titano: Guaita, Cesta, and Montale; the coat of arms is flanked by a wreath, below a crown and above a scroll bearing the word LIBERTAS (Liberty); the white and blue colors are also said to stand for peace and liberty respectively

Economy :: SAN MARINO

San Marino's economy relies heavily on tourism, banking, and the manufacture and export of ceramics, clothing, fabrics, furniture, paints, spirits, tiles, and wine. The manufacturing and financial sectors account for more than half of San Marino's GDP. The per capita level of output and standard of living are comparable to those of the most prosperous regions of Italy.

San Marino's economy has been contracting since 2008, largely due to weakened demand from Italy - which accounts for nearly 90% of its export market - and financial sector consolidation. Difficulties in the banking sector, the recent global economic downturn, and the sizable decline in tax revenues have contributed to negative real GDP growth. The government has adopted measures to counter the downturn, including subsidized credit to businesses and is seeking to shift its growth model away from a reliance on bank and tax secrecy. San Marino does not issue public debt securities; when necessary, it finances deficits by drawing down central bank deposits.

The economy benefits from foreign investment due to its relatively low corporate taxes and low taxes on interest earnings. The income tax rate is also very low, about one-third the average EU level. San Marino continues to work towards harmonizing its fiscal laws with EU and international standards. In September 2009, the OECD removed San Marino from its list of tax havens that have yet to fully adopt global tax standards, and in 2010 San Marino signed Tax Information Exchange Agreements with most major countries. In 2013, the San Marino Government signed a Double Taxation Agreement with Italy, but a referendum on EU membership failed to reach the quorum needed to bring it to a vote.